In this Research & Commentary, Matthew Glans examines a new bill in Ohio that would require state officials to conduct quarterly eligibility checks on food stamp recipients, using several state and federal databases.

In an effort to combat fraud and abuse in its food stamp and Medicaid programs, a, while expanding the data used in those checks. The Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp system, has become one of the fastest-growing welfare programs. SNAP is the fourth-largest means-tested program for low-income families and individuals. It is administered by the U.S. Department of Agriculture, and the benefits are distributed by individual states.

Eligibility remains one of the key issues with SNAP. The current income and asset test for SNAP requires recipients to have a gross income below 130 percent of the poverty level and a net income below 100 percent of poverty, without having more than $2,000 in assets. These requirements are much closer to defining people in real need, but many SNAP recipients are accepted under looser standards through “categorical eligibility.” In the states using categorical eligibility for the SNAP program, recipients are determined not by the income and asset limitations established for SNAP itself, but by participation in other cash welfare assistance programs, which can have lesser eligibility standards.

Currently, about 1.5 million Ohioans receive food stamp benefits. Under the new system, Ohio officials would be required to ask SNAP applicants personal and financial history questions to verify their identity. According to Cleveland.com, under the bill, data from Medicaid recipients would be crosschecked with various records, including “real estate records, tax records, state lottery winnings, state residency data, other public assistance programs, incarceration records and immigration status reports.”

Any discrepancies or other “red flags” would be reported to local officials, who would then be required to investigate further. Once a problem is identified, recipients would be notified in writing and have 10 days to answer any inquires. If those recipients are found to have failed to comply with existing standards or fail to respond entirely, the state would have the power to deny an application or suspend benefits. This would allow officials to ensure only those truly needing assistance receive aid.

According to the Portland Press Herald, a similar program in Maine “identified more than $1.7 million in theft in 2016. The state also increased the number of welfare investigators from 9 to 17 at a cost of $700,000.”

Over the past four years, SNAP rolls have begun to slowly decline, but recent reports now suggest many states have relied on inaccurate data to monitor their payments and eligibility standards for SNAP. States are required by law to provide data to the SNAP Quality Control program indicating their error-rate statistics related to overpayments made to ineligible recipients and underpayments to those who should have received benefits.

Welfare reforms ought to focus on encouraging able-bodied recipients who are enrolled in these programs to become more self-sufficient and less dependent on government, by providing temporary or supplemental assistance while encouraging work and independence. Placing a greater emphasis on strong eligibility standards and limiting fraud is an important first step toward ensuring Ohio’s SNAP programs remain viable for those truly in need.

Food Stamp Dependence in the States http://thefga.org/solutions/food-stamps/
This interactive map from Foundation for Government Accountability shows what percentage of each state’s population is dependent on food stamps and how much it costs the state.

Maine Food Stamp Work Requirement Cuts Non-Parent Caseload by 80 Percenthttp://www.heritage.org/welfare/report/maine-food-stamp-work-requirement-cuts-non-parent-caseload-80-percent#_ftnref36
Robert Rector, Rachel Sheffield, and Kevin Dayaratna of The Heritage Foundation examine Maine’s food stamp reforms and discuss how they could act as a model for other states. “The Maine food stamp work requirement is sound public policy. Government should aid those in need, but welfare should not be a one-way handout. Able-bodied, nonelderly adults who receive cash, food, or housing assistance from the government should be required to work or prepare for work as a condition of receiving aid. Giving welfare to those who refuse to take steps to help themselves is unfair to taxpayers and fosters a harmful dependence among beneficiaries,” the authors wrote.

Nothing in this Research & Commentary is intended to influence the passage of legislation, and it does not necessarily represent the views of The Heartland Institute. For further information on this and other topics, visit the Budget & Tax News website, The Heartland Institute’s website, and PolicyBot, Heartland’s free online research database.

The Heartland Institute can send an expert to your state to testify or brief your caucus; host an event in your state, or send you further information on a topic. Please don’t hesitate to contact us if we can be of assistance! If you have any questions or comments, contact John Nothdurft, Heartland’s director of government relations, at jnothdurft@heartland.org or 312/377-4000.